Sterling SSA faces ‘uncertain’ 2019 as Brexit dawns

The sterling public sector bond market will head into the new year with a turbulent backdrop from the UK’s impending exit from the European Union. The market has shut early because of Brexit-induced volatility, and issuers and investors have adopted a wait and see approach before making 2019 plans.

By Burhan Khadbai

29 Nov 2018

A fall in Gilt yields caused by the Brexit concerns has made new issues unattractive for investors. Meanwhile, the volatility has also driven asset swap spreads wider, which has made deals also unappealing to issuers. That’s despite an improved cross-currency basis swap for dollar funders to issue in
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